On 29 February 1944, U-358 was located by four frigates of the 1st Escort Group about 450 miles north-northeast of the Azores. HMS Affleck (K 362) (Cdr C. Gwinner, DSO, DSC, RN), HMS Gould (K 476) (Lt D.W. Ungoed, RN), HMS Gore (K 481) (Lt J.V. Reeves-Brown, RN) and HMS Garlies (K 475) (Lt R.L. Calpe, DSC, RN) dropped 104 depth charges in the subsequent attacks, which were continued all throughout the night. The next day HMS Gore (K 481) and HMS Garlies (K 475) had to withdraw to Gibraltar for fuel, but the other two frigates continued the hunt. U-358 was forced to surface after being submerged for 38 hours and succeeded in torpedoing HMS Gould (K 476) with a Gnat fired from the stern torpedo tube, but was subsequently sunk by gunfire and depth charges from HMS Affleck (K 362) only 20 minutes later.

HMS Gould (K 476) was struck on port side in the aft motor room at 20.21 hours on 1 March 1944. The explosion broke her in two, the stern sinking rapidly and the fore part disappearing with a heavy list to starboard about 25 minutes after being hit. The commander, six officers and 116 ratings from HMS Gould (K 476) were lost. Three officers and 32 ratings were picked up by HMS Affleck (K 362) together with the sole survivor from the U-boat and were taken to Gibraltar, but one rating had died of wounds and was buried at sea on 2 March.